Mac Clone Maker Psystar Goes Bankrupt

Psystar, a company that was selling Mac OS compatible computers has filed for bankruptcy protection in California. Psystar says that financial woes pushed it to file for chapter 11. Some believe that its financial backers do not believe that Psystar can win the high-profile lawsuit that opposes it to Apple and therefore withdrew their support.

Due to the weakened economy, Debtor has had no alternative but to commence these Chapter 11 proceedings. Debtor sales have been greatly affected by the decrease in consumer spending. The financial crisis has also caused creditors to tighten up their terms and become more demanding for immediate payment. Debtor’s vendors due to their own financial problems are not being able to supply all necessary items to allow Debtor to produce their product, thus, forcing Debtor to pay higher prices for parts in order to fulfill customer orders in a timely manner and to assure satisfaction with the product. (Psystar)